$22B Plan Announced For Veterans

[hooah]

$22B Plan Announced For Veterans
Associated Press
October 17, 2003


WASHINGTON - House Republicans announced a $22 billion plan Thursday to partially overturn a 19th century policy depriving disabled veterans of some retirement pay.

For veterans groups who have spent years pushing for the change, it was a long anticipated, if not fully satisfying victory.

"We've worked hard to begin this process of fulfilling our obligations to our veterans," said House Majority Whip Roy Blunt, R-Mo., a participant in weeks of negotiations to work out a compromise acceptable to the White House and GOP congressional leaders.

The plan, to be phased in over 10 years, would mean greater benefits for about 245,000 disabled veterans, nearly half of those who see their retirement benefits reduced or eliminated under current law.

The measure is now part of a defense bill, though it could shift to different legislation if the defense measure is stalled by other disputes, Blunt said.

Under an 1890 law aimed at Civil War veterans, retirees' retirement pay is reduced $1 for every dollar in disability compensation they receive. For years, veterans and their many allies in Congress have pushed to change this, but made little headway because of the cost, commonly put at about $58 billion over 10 years.

This year, with wounded military personnel returning from Iraq, the pressure for action has increased.

Under the compromise, veterans with a service-connected disability rated 50 percent or higher by the Veterans Affairs Department would get their full retirement pay after 10 years.

VA disability rates run from a tax-free $633 a month for those with a 50 percent disability to $2,193 for someone with 100 percent disability. Under the phase in, the 50 percent disabled person would get $100 a month effective Jan. 1, 2004, and the totally disabled person $750 toward their lost retirement pay.

Purple Heart veterans - those hit by enemy fire - and others with combat-related disabilities would get full benefits. Reservists and National Guard members would be eligible for this status.

The plan sets up a commission to review the current VA disability system to ensure it is equitable.

"It doesn't solve the whole problem, but it is a giant step that will provide substantial relief for the most severely disabled and combat-wounded retirees," said Norb Ryan, retired Navy vice admiral and president of the Military Officers Association of America."

"This is a move forward," said Joe Violante, national legislative director of the Disabled American Veterans. "But it certainly is not everything and we're not going to give up the fight for those veterans that have not been included."

American Legion National Commander John Brieden said the nation's largest veterans group "will accept nothing less" than full benefits. "Just compensation for service-disabled military retirees should be no less a priority than rebuilding Iraq," he said.

Democrats have charged the White House and GOP leaders with shortchanging veterans while waging war in Afghanistan and Iraq, and were critical of the compromise.

"Republicans have put forward a deal that leaves far too many veterans behind," said House Democratic leader Nancy Pelosi of California, adding that Democrats forced Republicans to act. "Democrats made this issue too hot for Republicans to handle."

Republicans in turn said Democrats had done nothing on the issue in the four decades they controlled the House before 1995.

"This has been around for a century, and yet only now, at this hour, do we have a significant and ... historic conclusion to this problem," said Rep. Christopher Smith, R-N.J., chairman of the House Veterans' Affairs Committee.

Rep. Mike Bilirakis, R-Fla., the lead proponent on the issue since he first introduced legislation 18 years ago, said: "We didn't think it's enough either, but it's a heck of a lot more than we've ever seen before."